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President, Manufacturers Association of Nigeria (MAN), Frank Udemba Jacobs, says repatriating foreign exchange into Nigeria through export of finished steel will add value to the Nigerian economy.
Speaking at an event tagged ‘Taking Nigerian Steel to the Global Map,’ where African Industries Group announced export of finished steel to Morocco and other parts of the continent, Jacobs said the company needed to be congratulated for achieving this feat.
African Industries has 12 subsidiaries, including six big steel plants such as African Steel Mills, Ikorodu Steel Mills, African Foundries, and Abuja Steel Mills. The firm produces 1 million tons of steel per year, representing about one-thirds of steel production in the country. It has invested $1.1 billion into the Nigerian economy and employs 8,000 citizens directly and thousands of people indirectly, according to its managing director, Alok Gupta.
“Over 50 percent of iron rods consumed in the country are produced by us. We save Nigerians millions of dollars in foreign exchange and we are setting up an agric processing facility in the northern part of Nigeria,” Gupta said.
He called for Export Expansion Grant (EEG) to be given to the company and reduction in freight costs coming into Nigeria.
Gupta said the quality of steel products of African Industries was at par with steel from Ukraine, if not better, adding that the company was now internationally competitive in exporting steel products from Nigeria.
“We generate 115MW of power. We generate our own electricity using natural gas and sell our surplus electricity via the national grid,” he stated.
According to Gupta, African Industries is the first company in Nigeria and the second in the sub-Saharan Africa to get UK and US certifications in steel, which means the company’s products can now be exported to Germany, the UK and many parts of the world without anybody questioning them.
Hameed Ali, comptroller-general, Nigeria Customs Service, who was represented by Bashar Yusuf, customs area comptroller in charge of Tin-can Island Command, said the Customs was looking forward to export of more Nigerian products to the world.
“We will do whatever we can and whatever it will take to facilitate export of Nigerian cargoes,” Ali said, stressing the readiness of the Customs to help companies in terms of reduction in freight charges.
Oluyinka Kufile, chairman, Basic Metal, Iron and Steel Group of MAN and CEO of Qualitec Industries Limited, said given that the steel sector was the backbone of any economy, players need to be protected and encouraged.
“Most of the billets you see are the efforts of Nigerians. They pick up scraps from which billets are produced. From billets, companies like African Industries produce steel. No matter any major project you do, you need 70 to 75 percent of steel to do it. This is why we want to see more exports,” Kufile said.
Kayode Fayemi, minister of mining and steel development, who was represented by Ime Ekrikpo, said the ministry wants to take the steel industry from the midstream to the upstream where players can mine locally available iron ore to produce steel.
“We need to add value to the iron ore deposits we have to produce steel. That is the next phase the ministry envisages for the likes of African Industries,” Fayemi said.
